Temporary worker specialists ready to meet tax challenges
The announcement comes after a seminar held last week by Eccleston Square Consulting Group (ESCG) and Intelligent Salary Services (ISS) for clients ahead of the changes taking place in April this year.
From April 6 - after a year-long consultation process - a series of sweeping changes in the country’s tax laws will take effect.
Key changes will see offshore employment intermediaries such as ISS deducting employers’ national insurance on staff pay at source along with new quarterly reporting requirements for any intermediaries such as recruitment agencies making gross payments – to any onshore or offshore umbrella company, self-employed individual, or limited company.
As an offshore company, ISS is keen to remain compliant with the appropriate tax legislation and is pledging to actively work with clients and the UK Government throughout the changes.
Sark-based ISS – part of ESCG’s comprehensive and diverse portfolio of business solutions - has worked closely with organisations operating in the recruitment sector, taking care of all invoicing, employment and administration matters and allowing their low to middle income staff to take home more of their hard-earned pay.
Critics predicted that companies such as ISS would be seriously affected by the introduction of the new tax law changes which came about following a lengthy consultation process.
But both ISS and ESCG insist they are in ’rude health’ and are & lsquo;well prepared’ to meet the challenges.
ISS in particular says it continues to attract new business and is actively taking on new clients.
In a typical month, it raises £8M in invoices, pays £30,000 in Employer Pension contributions, and £1.2M in PAYE tax and National Insurance.
Andrew May, founder director of ISS, said: “It is no secret that we lobbied heavily against the Government implementing these changes to the UK tax laws.
“Rather than save money, we feel that, in the end, it will cost the Government more money in policing the increased non-payment across the temporary worker industry that we predict will take place.
“However, we are totally committed to the laws under which we operate and are completely prepared for the new changes, beginning on April 6.
“As always, we have been involved in continuous, positive dialogue with HMRC to ensure we are fully compliant.
“This is an exciting new chapter in the nine year history of ISS and we are looking forward to the challenge.”
ESCG Director Jason Medcalf, said, “We’ve had some very positive feedback from those who attended the seminar in London.
“We felt it important that we made ISS clients fully aware of all the changes that might impact on them.
“The companies we represent have successfully negotiated past changes such as IR35, Managed Service Company Regulations, Agency Worker Regulations, Real Time Information Reporting, and Auto-enrolment pensions. This too shall pass.
“We are happy to report that there is widespread support for our approach going forward and a strong commitment to working through the changes in a compliant, unified manner.”